Noida, Aug 25 (APAC Media): BSE Sensex and NSE Nifty closed higher on Tuesday, with the benchmark Sensex gaining nearly 287 points as easing crude oil prices and buying in heavyweight stocks helped investors look past volatility linked to the monthly derivatives expiry.
The Sensex rose 286.98 points, or 0.37%, to finish at 77,656.09, while the Nifty 50 climbed 115.50 points, or 0.48%, to settle at 24,334.55.
The market remained volatile through the session, with traders adjusting positions ahead of the derivatives expiry. The introduction of the new Closing Auction Session for the Nifty 50 monthly expiry also added to trading activity and intraday swings.
A fall in crude oil prices provided some relief to investors. Brent crude declined more than 3% to around $89 a barrel, easing concerns over India’s import bill and inflation. India imports a large share of its crude requirement, making movements in global oil prices an important factor for domestic markets.
“Lower crude prices are supportive for India as they can help reduce pressure on the country’s trade balance and inflation,” analysts said, while cautioning that global geopolitical developments could continue to influence oil prices and equities.
Buying in several large-cap stocks helped the benchmarks recover from early weakness. ICICI Bank, Infosys, State Bank of India, Larsen & Toubro, Reliance Industries and Mahindra & Mahindra were among the notable contributors to the market’s gains.
The information technology sector also remained firm, while financial stocks attracted buying interest. The Nifty Midcap 100 index gained about 0.5%, although the broader market showed a mixed trend as investors remained selective.
Tuesday’s gains came despite continued uncertainty in global markets, where investors are monitoring developments in the Middle East and the direction of crude oil prices.
Market participants will now turn their attention to global cues, foreign institutional flows, currency movements and commodity prices for further direction.
Analysts said the near-term trend could remain volatile, particularly after the expiry-related activity, but a sustained decline in crude prices could provide some support to Indian equities.
The day’s trading underscored the importance of oil prices for the domestic market, with cheaper crude helping offset some of the concerns arising from geopolitical tensions and global uncertainty.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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